Fiscal year 2012 annual report [Dec. 2012]

SPC
Fiscal Year State Properties Commission REAL PROPERTY REAL SOLUTIONS 2012
Annual Report
State Properties Commission

State Properties Commission
Table of Contents
Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Portfolio Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Asset Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Space Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Transaction Management. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Vision, Mission & Values
Vision
To be the national leader in State real estate portfolio management
by exemplifying stewardship, accountability and integrity.
Mission
To advise, guide and maximize Georgia's real estate portfolio by applying industry
best practices in asset, space and transaction management.
Core Values
Stewardship Accountability Integrity Leadership
Steve Stancil
State Property Officer
Frank Smith
Deputy Executive Director

Commission Members
Governor Nathan Deal
Chairman
Greg Griffin
State Accounting Officer Vice-Chairman
Brian P. Kemp
Secretary of State Board Secretary
Steve McCoy
State Treasurer Board Member
Vacant
Citizen Member appointed by Governor
Mike Nixon
Citizen Member appointed by Speaker of the House
Dr. George Snelling, III
Citizen Member appointed by Lieutenant Governor

Pag e 1

State Properties Commission

Maximizing the Value and Use of Georgia's Real Estate Portfolio

With the creation of the position of State Property Officer and the enactment of legislation realigning the management of the State's capital assets in 2005, the State Properties Commission (SPC) was designated as Georgia's real estate portfolio manager. SPC is responsible for the acquisition and disposition of all State-owned real property and real property interests. Additionally, SPC provides a full array of leasing services to State entities in commercially leased space. SPC also is equipped to conduct studies, research and evaluations and to provide statewide policy leadership and coordinate master planning to guide and implement capital asset management. From the review of State Facility Strategic Plans, maximizing the value of the State's assets, increasing the utilization and efficiency of workplace environments and lease and land transactions, SPC's primary focus is to provide accountability in its

stewardship of the State's assets for the taxpayers of Georgia. By creating enterprise-wide leadership and advice for real estate transactions, asset and space management, SPC is a unified and fully integrated real estate portfolio management office that is being recognized as a model in the public sector.

Portfolio Management

SPC, as the State's Portfolio Manager, develops overall real estate strategies and advises OPB on capital budget expenditures. It is comprised of three distinct but coordinated programs:
Asset Management is the strategic function that manages the State's real estate assets to provide the maximum value to the State.
Space Management makes best use of State-owned and leased space by promoting and tracking utilization through standardized space planning to create efficient work environments.
Transaction Management provides for all tasks related to acquiring and disposing of real estate assets, owned or leased, and managing all activities required to lease property for State entities in commercially owned space.

Legislative Agenda
Several pieces of legislation were introduced during the 2012 Session of the General Assembly on behalf of the State Properties Commission.
House Resolution 1376 authorized the State of Georgia, acting through the State Properties Commission, to convey certain State-owned properties around the State. Senate Resolution 873 authorized the State of Georgia, acting through the State Properties Commission, to grant non-exclusive easements for State-owned properties in various counties.
Additionally, SPC re-introduced a Constitutional Amendment (SR 84) and enabling legislation (SB 37) to authorize the State and the Board of Regents to enter into Multi-Year Leases. Both pieces passed the General Assembly and the Constitutional Amendment was placed on the November 2012 ballot for ratification by

Pag e 2

State Properties Commission

the voters of the State. The benefits of multi-year leases include the enhanced interest and increased pool of landlords leading to greater competition and lower rents, resulting in overall cost avoidance for the State; enables the State to negotiate potential rent abatements and tenant improvements with less upfront costs; and allows the State to adopt industry best practices which will provide access to private sector expertise in real estate portfolio management. Moreover, SPC estimates that Georgia will realize $66 million in cost avoidance over a ten-year period.

SPC sought to amend the current disposition process, which is lengthy and inefficient, with the introduction of HB 968. Benefits of a new conveyance process include reduced maintenance and operations costs while the property is vacant; property reinstated on local and county tax digests; earnings received earlier by the State Treasury to generate increased interest income; and best and final offers to allow for higher sales prices. As HB 968 remained in committee, SPC will re-introduce the streamlined disposition process in the 2013 Session.

Asset Management

The Asset Management Program has the responsibility to evaluate the value or interest of State-

Asset Evaluation: The analysis of a particular asset provides a basis to make portfolio-level decisions

owned and leased real property assets and to provide

around acquiring, disposing or renovating assets to

recommendations that increase its value to the State or

determine current and lifecycle costs, feasibility and

its market value to the commercial sector. Within this

highest and best use.

charge are five specific work processes that are the direct responsibility of Asset Management:

Asset Prioritization: This effort identifies properties within the portfolio that have the highest importance

Core and Non-Core: Establishing core and non-core

for surplus, investment or change and is used to con-

designation for each major asset in the portfolio pro-

tinually balance the mix of assets in order to maxi-

vides a basic foundation for asset and portfolio man-

mize the value to the State.

agement and is a starting point for prioritizing assets for evaluation and investment.

Surplus Property: Establishing portfolio-level disposition goals and then implementing these procedures

Total Cost of Occupancy (TCO): TCO provides a

is critical in rebalancing portfolio assets to achieve

framework for making better real estate decisions and

the best combination of cost and utility.

measuring costs for comparing asset performance.
BUILDINGS PORTFOLIO - Agencies with Most Square Feet

Agencies with Most Square Feet

80,000,000 70,000,000

70,662,870

60,000,000

50,000,000

40,000,000

30,000,000 20,000,000 10,000,000
-

14,169,965 11,322,225 7,558,874 7,213,499 6,128,912 5,371,046 4,534,139 3,570,860 3,148,667

Pag e 3

State Properties Commission

1,300 1,200 1,100 1,000
900 800 700 600 500 400 300 200 100
-

1,228 1,194

Highest Primary Use Types
NuHmibgehr oefsBtuPilrdiinmgsary Use Types
Number of Buildings

845

841

614 471

396

373

360

346

Accomplishments
SPC Audit Policy Implementation

Buildings, Lease and Other Assets databases for completion by all state agencies. Additionally, SPC con-

The Georgia Department of Audits and Accounts is-

tacted 27 agencies that were identified base on six key

sued a Performance Audit Operations Report in Janu-

fields that were either lacking data or in need of updat-

ary 2012 containing several recommendations for im-

ing information. With the exception of two agencies,

provement. The methods employed by the performance

missing or incomplete data has been corrected; the six

audit verified many of the processes, procedures and

fields are monitored on a monthly basis. Occupancy

documentation that SPC follows in the areas of Space

and capacity information is captured for administra-

and Transaction Management Lease Division withBUILDINGStiPvOe RoTffFiOceLIuOs-eA; gfoeroaf lBl uoiltdhienrgsuse type, percentage uti-

regard to industry best practices. Some areas related to

lized information is captured to better reflect usage.

the completion of data in the inventory of the State's real

Four use types were eliminated: "leased to a non-state

property assets (BLLIP) were found to be deficient due

entity", "vacant", "land/acreage" and "other".

to the reliance on state agency

personnel for data entry and editing. The following identi-

Age of Buildings

fies how SPC has addressed

those recommendations. 1. In order to effectively man-

2,072 or 28%

1,982 or 27%

1 to 20 Years 21 to 30 Years

age the state's real estate port-

folio, SPC needs to improve

31 to 40 Years

the accuracy and completeness of the BLLIP database.
SPC has identified manda-

1,033 or 14%

941 or 13%

1,273 or 17%

41 to 50 Years 51 Years or Older

tory (required) fields in the

Pag e 4

State Properties Commission

2. The State Properties Commission needs to develop stronger policies and procedures related to the factors that impact the state's lease costs.
Transaction Management Leasing Division developed standard operating procedures for all leasing processes which are posted on the SPC website. SPC also drafted eight (8) new policies for consideration at the December 2012 Commission Board meeting. SPC has access to market data from a nationally recognized source which will allow for the annual comparison of SPC lease rates with market rates. SPC developed a Tolerance Table to guide and document space (square footage) deviations.
3. SPC should conduct additional research related to leases that exceed average market rate to identify opportunities for cost savings.
SPC has begun to analyze market data on a regular basis to ensure that state agency leases with higher than average rental rates are targeted for potential renegotiation. Audit comments regarding the self-funding of tenant improvements were disallowed due to industry best practices and the unique nature of separating out these costs from rental rates. The costs of non-standard tenant improvements are maintained in lease files.
In summary, all audit recommendations have been addressed and documented in detail by a response report prepared by SPC and posted on our website (www.spc.georgia.gov).
"...really couldn't say enough about the great service SPC provided, especially with the needs assessment and the process...a much needed improvement for this community."

Building Assessments SPC coordinated several building assessments with
the GSFIC design review group. The purpose of these site visits was to evaluate the structures for potential disposition. The building components were assessed and facilities were scored on overall building conditions. This information will be used in future decision-making as to highest and best use, determining future capital needs or developing a disposition strategy. Building assessments were performed on the Skyland Office Building, 1200 Tradeport, 1150 Murphy Avenue, Northwest Regional Hospital, Archives and History Warehouse, and three buildings on the Ft. MacPherson complex: Third Army, FORSCOM and the Reserve buildings.
Northwest Regional Hospital

REMAT (Real Estate Management Advisory Team)
SPC hosted REMAT meetings with State agency representatives to keep all apprised of ongoing SPC and statewide activities. While several presentations were conducted by SPC staff, other issues addressed were presented by State agency facility managers and outside experts. Agenda items included BLLIP revisions detailing capacity and occupancy information, updates on the Statewide Utility Tracking Project, the GBA Toby Award Process, RMS Property Insurance requirements, leasing updates and the initiative to pursue rate reductions for FY'13, electronic forms for Space and Land management and legislative initiatives. SPC will continue the quarterly REMAT meetings and will plan to address any items of State agency concerns to continuously improve the State's Real Property Portfolio management.
Pag e 5

1200 Tradeport Building

State Properties Commission

County
Appling Atkinson Bacon Baker Baldwin Banks Barrow Bartow Ben Hill Berrien Bibb Bleckley Brantley Brooks Bryan Bulloch Burke Butts Calhoun Camden Candler Carroll Catoosa Charlton Chatham Chattahoochee Chattooga Cherokee Clarke Clay Clayton Clinch Cobb Coffee Colquitt Columbia Columbus Cook Coweta Crawford Crisp

Number of Leases and Buildings by County

Leases
9 4 4 4 27 2 8 18 6 6 42 9 4 4 12 32 9 6 2 10 2 24 7 7 53 3 2 18 59 8 28 4 42 19 15 11 0 5 14 2 12

Buildings
34 6 17 3 555 10 145 178 35 31 256 69 16 6 56 153 66 151 32 81 13 134 17 62 449 6 109 14 702 61 122 38 130 118 56 130 0 36 44 12 154

County
Dade Dawson DeKalb Decatur Dodge Dooly Dougherty Douglas Early Echols Effingham Elbert Emanuel Evans Fannin Fayette Floyd Forsyth Franklin Fulton Gilmer Glascock Glynn Gordon Grady Greene Gwinnett Habersham Hall Hancock Haralson Harris Hart Heard Henry Houston Irwin Jackson Jasper Jeff Davis Jefferson

Leases
5 5 66 11 11 3 35 11 6 2 8 12 15 5 14 8 21 9 8 213 11 2 27 11 8 9 41 9 32 2 6 4 11 3 16 23 1 4 4 6 9

Buildings
74 100 336 92 91 46 116 68 66
6 12 154 113 39 13 3 205 27 186 400 22 5 224 79 14 16 100 108 114 48 29 175 54 4 13 113 18 18 70 24 20

Pag e 6

State Properties Commission

Number of Leases and Buildings by County (Continued)

County
Jenkins Johnson Jones Lamar Lanier Laurens Lee Liberty Lincoln Long Lowndes Lumpkin Macon Madison Marion McDuffie McIntosh Meriwether Miller Mitchell Monroe Montgomery Morgan Murray Muscogee Newton Not Georgia Oconee Oglethorpe Paulding Peach Pickens Pierce Pike Polk Pulaski Putnam Quitman Rabun Randolph

Leases
5 3 5 6 6 18 6 13 9 3 35 19 3 3 1 10 7 7 2 14 15 1 9 11 44 10 19 12 4 11 10 5 4 5 11 2 12 4 6 4

Buildings
64 42 32 47 22 75 54 24 77 27 225 108 61 28 5 57 259 141 10 54 182 50 201 113 190 74 40 58 51 49 115 16 12 35 30 54 253 3 98 12

County
Richmond Rockdale Schley Screven Seminole Spalding Stephens Stewart Sumter Talbot Taliaferro Tattnall Taylor Telfair Terrell Thomas Tift Toombs Towns Treutlen Troup Turner Twiggs Union Upson Walker Walton Ware Warren Washington Wayne Webster Wheeler White Whitfield Wilcox Wilkes Wilkinson Worth

Leases
28 12 3 12 5 11 10 2 15 3 1 11 2 8 5 16 21 10 4 3 16 3 4 12 15 15 11 22 3 13 14 4 1 7 19 3 7 3 5

Buildings
374 71 5 28 62 149 28 74 150 27 98 402 23 57 20 85 334 66 62 23 57 23 10 130 68 88 37 223 6 129 72 5 120 205 66 41 32 10 8

Pag e 7

State Properties Commission

Process Improvements
BLLIP Quality Control Critical fields were identified by Asset Management
to be used for future analysis; and occupancy and capacity information was completed by agencies for Stateowned and leased administrative office workspaces. For those primary use types other than offices (i.e., warehouse, classroom, training, etc.) SPC developed a "percentage used" field to provide comparable utilization information.
Department of Education - Administration Bldg, Clarkston
Verification Site Visits / Reports Asset Management conducted several verification
site visits to properties to ensure that the data in BLLIP accurately reflected the building facts and conditions. Due to the high volume of buildings, a representative sample was selected from BLLIP based on the determination by SPC that the data was inaccurate, inconsistent or missing. In many cases, capacity and occupancy information was updated and correctly inputted for both the inventory and risk management (insurance) purposes of the database.
Future Opportunities
Proper Care of Vacant/Shuttered Buildings SPC will develop and propose a policy for SPC Board
approval at the December 2012 Commission Board meeting that will outline the proper care and maintenance of vacant buildings in order to protect the value of the State's real property interests while in the custody of State agencies. Currently, there is wide variation in the maintenance of state buildings once they are vacated by agencies. A state policy is essential to ensure the safety of the premises, to protect the building from weather and other hazardous conditions, to conform to community aesthetics (e.g., landscaping) and to preserve

the value of the building for future marketing or other disposition opportunities. Required information will be entered into the BLLIP database to inform SPC of the status of the building and additional information will be necessary for the Risk Management Division of the Department of Administrative Services to properly insure the building as a vacant structure. Confederate Avenue Property
SPC conducted an inventory of all buildings on the Confederate Avenue Complex (Atlanta) to determine custodial agencies, occupancy, condition of buildings and potential for repurposing and/or disposition. The Departments of Public Safety, Defense, Corrections, Transportation and the Georgia Emergency Management Agency are housed on this property; the Department of Defense has mostly relocated to Marietta and still uses some space for storage. SPC is evaluating the retention of some buildings to be repurposed to support the DOT Transportation Management Center, a 55,000 square foot building constructed in 1994 that continues to serve the DOT in statewide traffic operations. Once this analysis is completed, SPC will develop a timeline for the disposition of surplus State property no longer needed.
Transportation Management Center
Georgia Emergency Management Agency

Pag e 8

State Properties Commission

Space Management

The Space Management Program offers a full range of professional planning services to State entities in meeting their space needs. These services include receiving all requests for space, developing space utilization programs to determine square footage requirements and preparing schematic floor plans and design intent drawings to guide workspace layout. The overall goal of Space Management is to maximize the utilization of State-owned and leased space to create efficient work environments using industry standards and public sector criteria to accomplish the following objectives:
Increase occupancy Decrease vacancy Improve the value of State-owned and leased space Provide the most cost efficient work space for State
entities
Spaces By Use Type
Spaces by Use Type

Accomplishments
During FY'12, Space Management (SM) processed 1,315 Space Action Forms (SAF). This form is used by any State entity requesting some action relative to workspace needs: new space, renewal, renegotiation, expansion or cancellation. With regard to the 90 requests for new space, SM reviewed 36 Space Utilization Questionnaires and developed Space Utilization Programs (based on statewide Space Standards) to provide guidance for the actual square footage requirements for the requesting agency. Additionally, SM either developed and/or reviewed schematic floor plans and design intent drawings for the space requests.

SpaceSRpaecqe uReeqsutesstbsybyTTyyppee

7% 2% 14%

New

78%

Administrative/Office

44% Classroom/Faculty Offices

6% 7% 2% 6% 1%

Classroom/Training Rooms Towers Warehouse/Storage

Other Uses

7% 26%

Renegotiation Renewals Cancellation GBA IGA Other

26%
4% 8% 9%

SpSapcaeceRReeqquueessttssbBy yAgAegnecnycy

Department of Behavioral Health and

Developmental Disabilities

5%

Department of Human Services

Department of Juvenile Justice 36%
Department of Natural Resources

3%

9%

Department of Corrections Technical College System of Georgia

State Board of Pardons and Paroles

Other

Pag e 9

State Properties Commission

Briefing on Real Estate Portfolio Management and Facilities Operations to Chinese Dignitaries - October 2011

Process Improvements
Revised Space Standards
First implemented in 1976 with the Space Management Act, SPC revised the State's space standards in 2008 and again in 2012 to improve space utilization and organizational effectiveness in alignment with industry best practices. By transforming space standards that focused on hierarchy to those with a focus on function, SPC condensed the existing eight categories of office space to five functional spaces by improving on the use of open workstations and providing increased flexibility with these options.
Private companies and governments alike have been looking for ways to reduce their real estate expenses in general and their office space costs in particular. The primary motive is saving money but experts say that having employees in closer proximity provides a more collegial and collaborative environment and a more productive and profitable one.
GBA Backfill
Space Management continually strives to maximize workplace utilization. Toward that end, we work with GBA to provide tenants to fill vacant space in the GBA managed buildings on Capitol Hill. During FY12, Space Management assisted State agencies in relocating from commercially leased space to GBA owned space and GBA is experiencing the highest occupancy rate in recent history. Currently, the occupancy rate of GBA office space is 97%.
BLLIP
With a goal of increasing accuracy and completing data, SPC worked with OPB to require agencies to update their information in BLLIP as a prerequisite to submitting their annual Strategic Plans. This benefited the application in the following ways: data was updated and reviewed

by agencies to provide accurate information in the budget process; new users were introduced to BLLIP and learned the importance of the State's inventory of property; and DOAS Risk management had more precise information for the State's insurance program.
Programming
In an effort to provide greater consistency and to standardize work environments, SM developed several models for State agencies' field offices. First introduced several years ago with the Division of Family and Children's Services (DHS), and Probation and Parole offices, SM employed this process in developing programs for Adult Protective Services, Child Support Services, Georgia Vocational Rehabilitation Agency and DJJ community corrections offices, regional offices and Multi-Service Centers. Requesting that each agency list the minimum functional requirements for the respective field offices ensures that SM is meeting the business needs of the agency and enables flexibility in office size as well as providing for future growth. SM is able to develop consistent Space Utilization Plans in a timely manner for agency approval.
Space and Transaction Management Tracking System
The Space and Transaction Management Tracking System (SATMT) an internal project management information system designed to provide real-time management of SM and TM workflow processes was extended this year to include requests for office space in GBA buildings on Capitol Hill. This expansion enables SPC to electronically transmit all forms and plans to GBA, allows GBA to contact agencies directly for site visits and supports the GBA work-order process for tenant improvements, including construction. The streamlined process has resulted in enhanced communication and collaboration with SPC, GBA and State agencies.

Pag e 1 0

State Properties Commission

Transaction Management

Leasing Division
The Leasing Division provides oversight for the State's leased property portfolio. Services offered range from locating and procuring new lease locations to renewing or renegotiating existing agreements as well as managing the State's lease inventory. The Division's responsibilities and functions include leasing assistance to State entities in both State-owned or commercially-owned facilities, site selection and tenant improvements, lease negotiation renewals and renegotiations and lease executions. SPC Maintains an Inventory of 1,905 Agreements:

Total number of SPC Administered Leases 1,234

Number of "New" Leases FY12

80

Number of "Terminated" Leases FY12

63

Accomplishments
SPC participated in the opening of twenty-three (23) new State leased facilities for a total of over 230,000 square feet.
SPC programmed and opened a new prototype facility for the Department of Corrections - Probation Division; moving from enclosed offices to an open environment of workstations and cubicles.
SPC assumed the responsibility of identifying and accounting for the locations of the Department of Human Services - Right from the Start Medicaid (RSM) and leasing new sites using the State's space standards.
Leasing Division developed and implemented procedures and policies.

Number of "Renewed" Leases FY13

604

SPC initiated a process to send all design intent draw-

Number of "Renegotiated" Leases FY13

369

ings (DIDs) to the office of the State's ADA Coordinator for formal review and approval to ensure all State

Number of Other

118

administrative office space met the amended ADA

Total number of AgencyLMEaAnSagEedPLOeRasTesFOLIO 6-7110 HIGHEpinSroTMceaUdrcSuhrEeosfTi2mY01pP2lEe. mSented by the Federal government



Lease Portfolio - 10 Highest Use Types

Dormitories, 27 Storage, 28 Student Union, 30

Parking Facilities, 37 Retail, 58 Residences, 75

Office 1,109

Classrooms, 114

Radio Antenna/Tower, 142
Land/Acreage, 188

Pag e 1 1

State Properties Commission

FY2012 Lease Portfolio

Entity
State Board of Regents
Department of Human Services Department of Labor Department of Revenue Department of Corrections Technical College System of Georgia Department of Juvenile Justice Department of Transportation Office of the Secretary of State Department of Community Affairs Department of Administrative Services Department of Drivers Services Department of Audits & Accounts Georgia Lottery Corporation State Board of Workers' Compensation Department of Law Department of Economic Development Department of Public Health Department of Behavioral Health and Developmental Disabilities Department of Defense Georgia Public Defender Standards Council Georgia Bureau of Investigation Department of Natural Resources Department of Banking & Finance Department of Public Safety Judicial Branch of Georgia State Road and Tollway Authority Office of the Governor Department of Insurance Department of Education Subsequent Injury Trust Fund Ga. Superior Court Clerks' Cooperative Authority State Soil & Water Conservation Commission State Board of Pardons and Paroles Department of Veterans Services Department of Community Health Georgia Student Finance Commission Georgia Forestry Commission Sheriffs' Retirement Fund of Georgia Department of Agriculture
Totals

Number of Agreements
352
456 53 16 115 76 108 3 6 21 21 56 8 10 8 4 8 24 21
16 8 19 253 5 94 4 1 4 2 3 1 2 5 47 45 1 1 25 1 2
1,905

Annual Base Rent
$299,957,977.60
$47,956,667.62 $8,971,059.38 $8,388,915.45 $6,739,769.96 $5,500,493.45 $5,304,704.92 $4,517,554.00 $3,842,724.77 $3,146,991.60 $2,719,023.44 $2,459,403.76 $2,354,911.04 $2,090,758.08 $1,580,422.32 $1,182,550.70 $1,038,254.39 $1,015,132.36
$730,095.36
$610,801.78 $589,877.38 $588,605.12 $564,872.00 $417,628.68 $405,310.82 $384,845.95 $355,615.53 $255,390.91 $217,680.38 $203,924.76 $203,040.84 $159,134.52 $110,703.00 $94,844.45 $87,481.86 $81,649.76 $31,891.92 $25,834.75 $16,200.00
$7,920.00
$414,910,664.61

Percent of Total Rent
72.295%
11.558% 2.162% 2.022% 1.624% 1.326% 1.279% 1.089% 0.926% 0.758% 0.655% 0.593% 0.568% 0.504% 0.381% 0.285% 0.250% 0.245% 0.176%
0.147% 0.142% 0.142% 0.136% 0.101% 0.098% 0.093% 0.086% 0.062% 0.052% 0.049% 0.049% 0.038% 0.027% 0.023% 0.021% 0.020% 0.008% 0.006% 0.004% 0.002%
100.00%

Pag e 1 2

State Properties Commission

Agencies with Highest Number of Leases Agencies with Highest Number of Leases

500

456

450

400

352

350

300

253

250

200
115

150

108

94

100

76

56

53

47

50

Agencies with Most Square Feet Leased

Future Opportunities
As a result of actions taken by the General Assembly during the 2012 Session, SPC assumed the real estate responsibilities of the newly created Georgia Vocational Rehabilitation Agency (administratively attached to the Department of Human Services) from the Department of Labor.
Development, approval and implementation of policies and procedures for MultiYear-Leasing.
Completion of all capacity information in BLLIP for administrative office space for SPC administered leases.

Agencies with Most Square Feet Leased
16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000
0

"I work with the land department quite often... always so helpful and patient... Even when I ask for help with something that my agency should already have, they don't hesitate to help me."

"...personnel and promptness has been excellent... have enjoyed working with the SPC staff over the years. We have managed to bring our old pending property transactions up to a current condition."

Pag e 1 3

State Properties Commission

Land Division
The Land Division assures that all acquisitions and dispositions of property or property rights in the State's name meet the legal and policy requirements of the State. Properties owned by the Board of Regents and by Georgia DOT are excluded. Acquisitions by the State include purchases or donations of fee simple interests, conservation easements and ground leases. Dispositions include temporary revocable licenses, permanent easements, short or long-term ground leases and conveyances. The Land Division also leads projects on crossagency issues and efficiencies, conducts title research, verifies ownership of State property for construction with GO bonds and assists with Executive Orders for the Governor on property issues such as custody and the demolition of buildings. The division also provides agency and individual training for State personnel as needed.
"Land Department has been instrumental and extremely helpful in assisting the Department of Juvenile Justice with land transfers, property resolutions, and dispositions."

Accomplishments
Building on the 2011 SPC Disposition Study, the Land Division summarized other states' disposition strategies. Legislation was introduced during the 2012 Session of the General Assembly to revise and streamline the State's disposition process; no legislative action was taken and the legislation will be re-introduced for the 2013 Session.
In February 2012, SPC completed the sale of the Macon District Public Health Office for $900,000 (0.361 acre). Additionally, five (5) other properties totaling 4.88 acres were sold for $286,401. The total for all sales during FY 2012 was $1,186,401.
2012 Conveyance Legislation: 51 items researched, of which 38 items were in the final Act.
2012 Easement Legislation: 31 items were researched, of which 21 items were in the final Act.
2012 Legislation: Coordinated with Department of Natural Resources on two change of use Easements; and with Department of Revenue on review by SPC of all Conservation Easement appraisals for Georgia Tax Credit, effective January 1, 2013.

45
41
40

FY 2012 - Land Division - SPC Board Meetings
FY 201A2pp- rLoavnedd IDteimvission SPC Board Approved Items

35

30

25

20

15
15
10

5

1

0

0

1

5

5

1

2

2

Acquisitions -Fee Simple Acquisitions -Conservation Easements Acquisitions -Easements Acquisitions -Ground Lease Reversion -Quit Claim Deed Revocable License Agreements (RLA's)-SPC Board Disposition -Approve Sale Disposition -Ground Lease Disposition -Short Term Lease Encroachment Agreements

Pag e 1 4

State Properties Commission

Revocable Licenses issued: 41 for public purpose or short term use; five for private uses approved by the Board.
Certification of ownership prior to GSFIC construction with GO bonds: 13.
Executive Orders requiring SPC assistance: 6.
Interagency or intergovernmental projects: Georgia Aviation Authority properties to convey; tidal waters ownership and mitigation banks; Salt Creek Mitigation Bank; Cave Spring Rehabilitation Center; College Football Hall of Fame; seven agency training sessions; and disposition of several armories.
"...has been a tremendous resource and has provided outstanding service to the Department of Juvenile Justice in its project to update and complete the State of GA's Consolidated Database of Real Property Assets, aka BLLIP. We always get great service and enjoy working with SPC."

Future Opportunities
Interactive web-based document sharing system with the Department of Law.
Sales of properties identified in the 2011 SPC Disposition Study and more efficient selection and disposition of surplus properties.
Research projects, such as the Multi-Modal Transit
Electronic document management system for electronic retention of SPC land files.
Interagency and/or intergovernmental projects, such as surplus and sale of Northwest Regional Hospital and of Metro State Prison; Tronox bankruptcy sale and mitigation bank; College Football Hall of Fame ground lease; Central State Hospital and four other agencies' water system sale of pipes; Kia restrictive covenant to U.S. Army Corps of Engineers and GDOT conveyance.

11% 28%

FY 2012 - Land Division FY S20P1C2 L- LeagnidslDaivtiisoionn
SPC Legislation

24 Easements Approved

18%

2%

5%

3% 12%

9 Easements Prepared But Omitted from Legislation
15 Conveyances-To Sell Approved
21%
3 Conveyances-To Sell Prepared But Omitted from Legislation
18 Conveyances-To Local Government or GDOT Approved
10 Conveyances-To Local Government or GDOT Prepared But Omitted from Legislation 4 Conveyances-Ground Leases Approved
2 Conveyances-Ground Leases Prepared But Omitted from Legislation

Pag e 1 5

7%
7%
1100%%

FY 2012 - Land Division State ProOptehretr iPerosjeCcotsmmission
FY 2012 - Land Division Other Projects
FY 2012 - Land Division Other Projects

6%
6%

14%
14%

66%%

8%
8%

49%

Expenses
Personal Services Expenses Regular Operating Expenses Real Estate Rents Per Diem and Fees Computer Charges Telecommunications Total Expenses Total Position Count

49%
FY2012 Expense Budget

13 Title Certifications
13 Title Certifications
6 Executive Orders
6 Executive Orders
4477RRLLAA's's--SSttaatteePPrrooppeerrttyy OOfffficiceerrAApppprroovveedd
8 Intergovernmental Agreements
8 Intergovernmental Agreements
9 Training Sessions for other Agencies
9 Training Sessions 7foCrreoathteeraAndgeRnecvieisse
SPC Documents
67OCtrheearteItaenmdsRevise SPC Documents
6 Other Items
1,136,698* 30,011* 96,759* 26,561* 19,479* 10,732*
1,320,240* 13*

"I have had numerous interactions with Transaction Management and find them consistently knowledgeable, thorough, and resourceful. An excellent example of my tax dollars at work!"

SPC determined that 95.5% of the leases that SPC originates are at or below market rates as defined by industry benchmarks.

Pag e 1 6

State Properties Commission 47 Trinity Avenue, Suite G02, Atlanta, Georgia 30334
404-656-5602 Fax 404-651-8084 w w w. s p c . g e o r g i a . g o v December 2012